Things To Know Before Trading On 4th June 2019

by BM Research www.bmresearch.co.in

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Indian market decoupled with the global market and rallied for the Monday session with Nifty making fresh high of 12103 in the second half of the trading session, a good start of the week. Index closed 1.39% up at 12088 levels.

In the sectoral, all the indices ended firm with Auto, Financial Services, FMCG, IT and Metal  leading the gains of more than a percent on expectations of RBI’s another rate cut by 25% a measure taken to ease the weak GDP data.

In the Broader market, Midcap and the Small cap index gained 0.96 and 028% respectively.

In the US market,

  • US Dow Jones Industrial Average had a slight recovery after falling sharp 350 points in the previous session. The index closed 4 points higher than the previous close.
  • The Nasdaq composite dropped further though with big tech shares like Facebook, Apple, Amazon, Alphabet taking corrective move. The index closes 1.61% down.
  • Dow futures also recovered to rise 0.3%

Asian shares were mostly lower for the Monday session as trade tension does not seem to fade

Related post

Indian and Global market at a glance

US- China working on a “Phase 1” trade deal

Positive news from the Brexit front boost the Global and…

  • Today, the Japanese Nikkei index falls further 0.37% after an early gain.
  • Hong Kong’s Hang Seng index also slumps further 81 points currently 0.35% down.
  • SGX Nifty opens lower of 54 points.

In commodities,

  • Crude oil stabilises after a sharp fall from past few days as Saudi Arabia assures to keep supply in check. Saudi Arabia indicated that the group of oil producers, together with Russia, would continue managing global crude supplies to avoid a surplus.
  • WTI crude oil is currently quoting at $53.03/bbl while Brent Crude Oil trading flat quoting at $60.98/bbl.
  • Gold trade firm on global risk aversion and moves up during risk off sentiment. As Global stocks and other assets classes were down, Gold take cues as safe haven investment reaching $ 1330/ounce yesterday and currently quoting at $1329/ounce today.

Among the important macroeconomic data released,

  • US ISM Manufacturing data showing manufacturing in US read below estimate for May to 52.1 compared to estimate of 53, lowest since October.
  • While India’s manufacturing data grows with Nikkei India PMI data index improving to 52.7 in May from 51.8 in April supporting the rally in the market yesterday.

 

Disclaimer: https://bmresearch.co.in/ represents Bitupan Majumdar which is an independent research analyst with SEBI RA registration code INH300006962. The report is distributed as per SEBI (Research Analysts) Regulations 2014. This report does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 includes Financial Instruments and Currency Derivatives. The information contained herein is from publicly available data or other sources believed to be reliable. This report is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Each recipient of this report should make such investigation as it deems necessary to arrive at an independent evaluation of an investment in Securities referred to in this document (including the merits and risks involved), and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. This information is strictly confidential and is being furnished to you solely for your information. This information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose

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